How to Claim PAYE Repayments as an Employee

As an employee, it's important to understand the intricacies of the PAYE (Pay As You Earn) system. This system is used to collect Income Tax and National Insurance contributions from your salary ...

There are instances where you may have overpaid your taxes and are entitled to claim a refund. Firstly, it's important to note that not all employees are eligible for PAYE repayments. This only applies if you have overpaid your taxes, either due to a change in circumstances or an error with your tax code.

If you believe you have overpaid your taxes, the first step is to check your payslips and P60 to confirm the amount of tax you have paid. You can also use the HMRC's online tax calculator to estimate your tax liability!

If you have confirmed that you have overpaid tax, the next step is to contact HMRC and request a tax refund. This can be done online, by phone, or by post. You will need to provide details such as your National Insurance number, PAYE reference number, and the tax year in question. It's important to note that there is a time limit for claiming PAYE repayments, so it's best to do this as soon as possible.

Another important factor to consider when claiming PAYE repayments is your tax code. This is a combination of letters and numbers that determines how much tax you should pay. If you believe your tax code is incorrect, you should contact HMRC to request a review. This could potentially result in a tax refund if you have been paying too much tax due to an error in your tax code.

"You may be entitled to a tax refund even if you haven't overpaid your taxes!"

For example, if you have been made redundant or stopped working partway through the tax year. Similarly, if you have made contributions to a pension scheme, you may be eligible for tax relief which can also result in a tax refund.

Remember, HMRC no longer issues automatic PAYE tax refunds, so you must claim yourself.

If you feel inspired to find out more about anything I've said here, do call me on 01908 774320 or leave a comment below and I'll be in touch as soon as I can.